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I got a message from Trace saying the same thing. In the fine print it describes the loan as a 5/1 ARM. After all we’ve seen in the last couple of years, why would anyone put in for an ARM right now? Those teaser rates look great now, but with a fixed rate you can still lock in something in the low sixes for 30 years.

Jason

I got a message from Trace saying the same thing. In the fine print it describes the loan as a 5/1 ARM. After all we’ve seen in the last couple of years, why would anyone put in for an ARM right now? Those teaser rates look great now, but with a fixed rate you can still lock in something in the low sixes for 30 years.

richard

Same reason as before. The coveted buyers are the people thinking short term. Do they REALLY want to try and sell to people looking 5+ years out? That is a hard sell.

richard

Same reason as before. The coveted buyers are the people thinking short term. Do they REALLY want to try and sell to people looking 5+ years out? That is a hard sell.

With the current economic climate less people are spending. Banks are desperate to offer mortgage loans for hope that consumers will consume (as we all know, consumption is one of the most important factors needed by our economy to stay afloat). But to really help alleviate the credit crunch, i think banks also offer lower interest rate to encourage borrowers to pay-off debt or to apply for a loan.